Why some family-owned businesses outperform

Family-owned companies tend to take a conservative, stable approach to business. This can be a source of strength and resilience, but it can hold them back during periods of disruption. PwC’s Global Family Business Survey 2025, conducted in collaboration with the John L. Ward Center for Family Enterprises at Northwestern University on behalf of its Kellogg School of Management, interviewed 1,325 family businesses across 62 countries and territories. Analysis of the responses shows that some companies are choosing caution. It also shows how leading firms are converting purpose, agility, long-term vision, and reputation into growth under pressure.

Key findings:

• One-quarter (25%) of family businesses saw double-digit sales growth over the past year—down from 43% two years ago. Agile and purpose-driven firms outperformed, with 31% of this group recording double-digit growth, compared to just 21% of the overall sample.
• Safeguarding the business (78%) and preserving the family’s legacy (77%) rank as the top long-term goals for family business leaders.
• The pace of reinvention is slow: around one-fifth (22%) say they are actively looking to rethink their management strategies, and just 3% say they are looking to reinvent their business.
• Three-fifths (60%) see AI as a growth opportunity, with technological advancements (65%) and digital transformation (64%) top of their growth priorities.

To grow with confidence, PwC research points to four areas of focus that set top performers apart:

Scaling your purpose. Firms with a clearly articulated purpose are twice as likely to pursue aggressive growth (18% versus 9%) and significantly more likely to prioritise innovation (23% versus 16%). That purpose needs to be codified and communicated publicly. Embed it in both the customer experience and the employee value proposition.

Embracing your structural agility. Despite the conventional wisdom about family businesses being cautious and slow-moving, high-performing family businesses are leaning into their structural advantages. They capitalise on attributes like private ownership, flat hierarchies, and concentrated decision-making power—to move quickly and decisively. They’re not just making rash decisions either. In our findings, 51% of agile firms have higher observed trust levels, versus 29% of their less-agile or non-agile peers. One way to build on this progress is by including generational, gender, and experiential diversity on the board. Strong governance encompassing a wide range of perspectives makes firms more agile and responsive.

Putting your long-term capital to work. In an era of macroeconomic uncertainty and geopolitical volatility, patient capital is proving to be a growth engine. When asked how they balance near-term results with long-term goals, three-fourths of family businesses favour either a long-term or balanced view. Similarly, 85% reinvest profits to fund innovation, relying on internal capital over external financing. One trouble spot—while the long-term mindset is often instinctive in the founder generation, the dynamics can change as ownership passes to the second and third generations. At that stage, governance becomes critical. Clear covenants and decision-making frameworks help align the ownership group with the business’s long-term objectives.

Protecting and activating your reputation. For family businesses, reputation is both a legacy to protect and a lever to activate growth. In our findings, reputation is positively correlated with steady growth, stronger communication of values, and more formal governance structures. To build on that, share messages about your company’s role in local communities. Maintaining a strong local presence can be a source of competitive advantage, as well as a counterweight to rising scepticism of business.